Financialisation of savings
There are early signals of household savings shifting from physical savings (gold and property) to financial savings.
Domestic mutual fund flows into equity markets have been positive for 15 consecutive months in a row. This makes it the longest streak of net inflows since the year 2000 when data on fund flows is available.
In contrast, India’s gold imports have shrunk by about $25 billion from the levels in 2013. Similarly property demand continues to remain sluggish, with RBI’s pan-India index for residential property prices indicating, at best, meagre price increases.
